The purpose of this study among others to analyze the influence of Trade Off Theory (Non-debt tax shields, liquidity) and to analyze influence Pecking Order Theory (Profitability, investment) of funding decisions on Islamic Banking in Indonesia. The study was explanatory research. The population in this research is Islamic banking in Indonesia in Indonesia, the period of 2008-2009.The number of samples that escaped from some conditions specified and used was 3 Islamic bank. The analytical tool used in this study using the PLS (Partial Least Square). The results showed that non-debt tax shields (X1), liquidity (X2), profitability (X3) and investment (X4) significantly affects financing decisions (Y), either simultaneously or partially. In general it can be concluded that Islamic banking in Indonesia tend to follow the hierarchy of Trade Off Theory compared with the Pecking Order Theory in its funding decisions. Trade Off Theory So much to explain the funding decision on Sharia Bank in Indonesia. Keywords: Trade Off Theory, pecking order theory, non-debt tax shields, liquidity, profitability, investment, financing decisions.